the snap thing i'm not on the same side as jon. it's going lower and i want to buy it there. >> royal dutch shell we never talk about this company. going higher, great dividend. >> erin? >> xli, you want to be long. >> doc. >> buying that one today great weekend all, "power" starts now. thanks, friday jobs, jobs and jobs. unemployment, its lowest level in 16 years. manufacturing making a comeback and stocks at record highs so why is former fed chairman alan greenspan now sounding an alarm? plus, move over all you fancy hedge fund managers, oprah winfrey is a better investor than you we'll tell you about the incredible amount of money she is making on weight watchers. a flashlight company that has been making its money here at home since disco ruled the air waves.

it's time to start dancing in the streets because the friday edition of ""power lunch"" is here right now ♪ ♪ welcome to "power lunch. i'm melissa lee. on the back of the jobs report the dow hit another all-time high at the open the major averages are fairing up a fraction of a percent and holding onto the record highs here dow 22,063 22 points off the record highs the s&p is up by 3 nasdaq up by 7.5 some big names bucking the bullish trends, teva getting crushed down about 10% mylan and perrigo drifting down as well. viacom, sponge bob square pantless, we'll dig into the pineapple under the sea coming up minutes ago, shares of blue apron falling to their lows on the session saying the company is going to cut 24% of their staff. they report the first quarterly

results as a parent company next week we may not have sponge bob but some have called him squid ward. >> come on, did you write that >> but i did read it. >> didn't preread it. >> squid ward is correct. >> you've got me for two hours >> welcome, guy adami. >> where's your jacket this is a grownup program. >> let me explain something. i play by my own set of rules as you've probably come to know something. >> that's why he's wearing a jacket. >> sans jacket he's brake breaking out the french it will be great let's get started with today's jobs report which was another good one restaurants, bars, health care powered the creation of another 209,000 jobs last month. wages ticked up, not a lot but they ticked up across america. steve leashman is here >> sign of seriousness i want to take a deeper dive into the jobs numbers to see who's going back to work, try to puzzle out this question

do we have enough workers to keep fueling the strong jobs numbers north of 200,000 around 60% of the population is at work. that's a number that's been rising since the end of the recession. if you went back a little further, it's 3 percentage points below the precrisis peak. that's 7.5 million people that could go back to work. just half would be about 3.8 that could help keep job growth north of 220,000 for several years. the latest data showed the year-over-year employment gains have been spread out by race whites, 850,000, 702,000 for black, asian, 130,000. it includes hispanic it's a long answer from the bls. what you need to know is the hispanic numbers have been very strong the non-hispanic white numbers weaker unemployment ratio lower than

pre-employment crisis for all of these groups the labor pool may have some room to run if the fed will let it i would point out larry kudlow has been on this show the last couple of days saying that's the number to focus on i went back in and looked at those numbers. indeed, larry seems to be right. there are pools of labor there if you really want to know how the numbers shake out, that -- well, just take the 3.8 million. half of those if you get back to 61.5% employment, bob. that's 100,000 extra jobs for about four years so if they come back to work, that's the question we don't know >> let's try to get an answer. steve. >> there's some smart people coming up. >> stick around. president trump cheering on that job number, but really how much do presidents or all of d.c. for that matter really matter to economic growth? let's bring in michael faroli and julia coronado, president and founder of macro policy fundamentals let's address what steve was

talking about. do you fear that a labor crunch is going to stifle growth down the road >> look, i agree with steve's take on it i think there stillis availabl labor. i think we're seeing that in the participant rate one group i've been watching is millennial women their participation rate has skyrocketed over the past two years. they're really coming back in really important numbers so i think there is every indication that's corroborated by sluggish wage growth. wage growth is okay, but it's really not accelerating. that's a broad-based phenomenon. i think the numbers are telling us that there's still more room to run in this labor market. >> do you think, mike, i wanted to ask you this question real quick, if there was a labor crunch, wages would be higher, right? >> right of course. and we're not seeing that. of course, productivity growth is low how high wages are actually going to get in this economy is another question i don't think anyone would argue

that the 2.5% numbers we're seeing now are consistent with a really severe labor crunch. >> so is that a signal then for the fed to let it run? in other words, is there a danger they could cut it off and should they essentially conduct an experiment here to let it run let's see how many people we can bring back into the labor force. >> already they're committing that experiment. nobody's saying they're hiking rates aggressively, right? if they hike rates one more time this year, i think they would still be below what most policy rules do recommend i think they're halfway to letting this experiment run. which seems appropriate. we should see how far it can run. at the same time you don't want to get too far away from what you think the neutral funds rate is, i believe. >> michael, i'll ask you this question obviously the fed has to be thrilled with where the employment rate is now, but you're not seeing the commensurate to your point wage growth are we just in this deflationary

period is this just the normal that we have to deal with now in terms of wage growth >> yeah. as i mentioned earlier with very weak productivity trends, i don't think we should expect wage growth to be above 3% or more in a noninflationary manner so what may be normal for wage growth, that is consistent with 2% inflation probably going to be something below the 4, 4.5% that we used to think was normal in the '90s, 2000s. >> go ahead. >> i would say -- i would just add to that that let's remember we're coming out of the deepest recession since the great depression and these wounds take time to heal it's going to take longer than usual to build up that momentum in wage growth than -- so you can't look at the usual wage growth between wage growth and unemployment rate. you have to let the market run a little warm. it's not exactly hot, but it's certainly running well and you want to let that go to recover some of that lost ground >> all right, guys we're going to leave it there.

thanks so much, michael and julia and our own steve liesman. stocks might be hitting record highs, but on ""squawk box"" alan greenspan warned the bond bubble might be about to break shannon is joining us and bill stone, global chief investment strategist at pnc asset investment shannon, i'll kick it off with you. do you think there is a bubble this is a run in bonds that i think nobody at the start of this year would have ever guessed would have happened. >> right i think the expectation has been for several years that we were going to see rates rise. and the reality is we are at the end of a very protracted bond bubble and with rates where they -- as low as they have been, the likelihood is that they're going to continue to rise however, there's a couple of mitigating circumstances as we've seen yields creep higher, we've seen a large group of buyers, whether they're institutional buyers trying to offset liabilities with buyers

outside of the u.s. who are still looking at yields that are much lower than those offered here in the united states for high quality sovereigns. i think the expectation is we will see this kind of creep higher in yield over the next several years. i think the pace of that is really what's most important and if there are these specific inflection points at which yields sort of shoot up quickly, that's the concern but the reality is that every time we sort of crest at a technical level from a ten-year perspective, we've seen buyers come in and buy those bonds. >> bill, that doesn't necessarily mean that we're not in a bubble, that just means that the bubble could be protracted at this point. >> yeah. i actually say i don't believe we're in a bond bubble now that isn't to say actually i agree with most of what shannon said, which is bonds are very expensive. we expect the yields to move up. i think the difference for me is at least in a bubble i guess i think like you have to have a much better chance that most of your money or your assets go

kind of, poof. think about whether it be the housing bubble or the tech bubble where you can really lose a large portion. not that you can't lose money on bonds but, again, setting aside let's say default. if you have bonds, they mature at some point and you get your par back doesn't mean it's worth as much in real dollars as it was, but it is i think a different phenomenon. >> i thought the greenspan interview -- sorry to interrupt. i thought it was a great interview. i watched it fantastic. what i found interesting is they, they being the federal reserve, they created it they did it started under his watch. >> i asked him that. he was around when the tech bubble, what happened with the tech bubble? massive amounts of liquidity injected after ltcm, asian financial crisis. >> so the bubble he's concerned about, he didn't have a time frame, that's fair because i don't think anybody knows, but the bubble has been created by the polt policies they put in place. >> by the way, you know what,

i'm trying to keep my mouth shut here because i like my company. >> don't. >> at the same time alan greenspan completely missed the entire -- the nasdaq bubble and everything else. >> yeah. >> if he says it's a bond bubble i'm going to take the other side of the trade. >> either that or he was treemly early. >> too early is wrong. i keep doubling down in black jack i'm going to run out of money eventually right, shannon do you listen -- whatever. even if there was a giant bond bubble, shan noon, would it matter >> i think the reality is we look at from 30 years to today the globalization of central bank policy and all of the things that have happened and the expectation that capital is much more free flowing than it has been historically. all of that lends itself to sort of a new precedent i think that bonds are expensiv but i also think there's -- the reality is to the comments made previously, i think that there's very little that can be done to sort of steer people away from buying u.s. treasuries long term

as part of their portfolio and so i think there's only a matter of time. there's going to be some pain but we're expecting interest rate normal zigs that's what everyone should be expecting. >> guys, the reality, bill, i'm sorry to jump in again, the reality for anybody, guy, melissa, the word bubble is massively over used. a bubble implies -- >> yes. >> -- an explosion and an inherent collapse of whatever it might be, right? bubbles always burst twice the rate at which they grew because the loss, the psychology of loss is greater than the joy of gain. psychologists have proven that it's a fact. so to say bubble implies that the bond market's going to shatter and erode in a matter of months, bill, and that's jot hooey. >> yeah, it's tough. like i said, i look at it as you have to say, well, it's totally irrational at some points. with inflation at 1.6% is it irrational you have 2.6% on the u.s. treasury? i don't think that's completely out of -- out of the, you know,

norm, actually now we expect inflation to move up a little bit. yeah, same thing we expect yields to move up. i think it's hard to say you're in a crazy place you can make an argument in other places in the world. it is over used, the term bubble here. >> going to leave it there thanks, guys have a good weekend, shannon and bill. >> thank you the recount story is something that has not been in a long time. for the first week that i can remember in over a year or two rig counts dropped we only lost one oil rig, lost four total, three gas, one oil oil rigs for the first time i believe, anybody out there who's smarter than us, correct me if i'm wrong, i haven't seen it dropped because we're up 490 oil rigs year over year. pioneer natural resources, the

other day, pxd, i don't mow if you talked about it on ""fast money"". >> why do you keep asking that >> when she's getting doused with roses and on some fancy vacation. >> she's entitled. >> that's just monday through friday. >> but they reported a big drop in -- not a big drop in production but a concern about it i wonder if to steve's point we're starting to see a labor shortage in the personal me an basis. i'm starting to get feelers out. >> wouldn't that be an encouraging sign if that were the case >> no, because you can get mor workers but you've got to pay them more but you can't pay them more if oil is at 50 bucks a barrel. >> oh. >> right that's the only way it works out. >> labor shortage, oil at 50 they're in a bit of a conundrum. >> it's a question, not a statement. >> sounded like a statement to me i don't know, maybe i went to the wrong school what about you >> sounded like a question mark. >> georgetown is my backup.

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is. a lot of reports in the past 24 hours weight watchers up the stock is on fire this year 260% oprah living large on this one

yelp soaring 25% it is selling one of its businesses back to grub hub to buy back shares. shake shack down 3% right now. they reported better than expected earnings in revenue but sales missed estimates the company did lower guidance that stock is down almost 6% blue apron shares falling to a new all time low since its ipo just at the end of june. planning to cut a quarter of its work force not an easy ride. >> no. you know, i did an apron segment. >> i know. >> i know the "power lunch" segment doesn't have it on >> we talked about it.

>> time and foley time ipo in recent history than this one >> or from the company's perspective, they sold it at a point where they had to sell they got it out the door before things really went south. >> now they're under the microscope. >> now they're under the microscope >> they did get the cash they're able to get. >> the market has clearly said this is not a company that should be public for the most part who was the analyst that put a $2 price target on that? i'm sure they're going to be sued if they haven't been

already. a lot of investors, this is a disaster. >> market participants are to blame. it's buyer beware. there is a caveat. there is an obligation among the highly paid investmentba banker crew that you bring companies public >> we should invite the folks at blue apron on to discuss the very topic we're talking about right now. i think it would be heated debate >> be a very good one. o ins deck, walmart's former cejous to talk about amazon and much more stay with us goin' up the country. later, gary' i have a motorcycle! wonderful. ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪ geico motorcycle, great rates for great rides.

calling it a great investment in american manufacturing. phil lebeau joins us with more details from chicago hi, phil. >> hi, melissa this is a big announcement from toyota and mazda here's what they've announced. the plant is only one part of this it will get the most attention today. it is a joint manufacturing plant. $1.6 billion is how much they're investing. they have yet to pick a location that will happen over the next several months 4,000 workers building vehicles. 300,000 at capacity. half for toyota, half for corolla. mazda will have the other half of the vehicles manufactured there. when they made this announcement this morning in japan akio

toyota and the c oe o of mazda said they're developing electric vehicles future technologies. that's part of the joint venture. the two companies are taking a stake in each other. at least a little bit of a stake to mention the commitment to each other you mentioned the trump tweets he was out tweeting this morning, remember what he tweeted oh, not too long ago when he was first elected. toyota motor said it will build new plant in baja, mexico. they're not building in baja, mexico, to build corolla cars for the u.s. no way, build plant in u.s.or pay a big border tax well, what's he tweeting today a far different tone from the president saying toyota and mazda to build a new $1.6 billion plant here in the u.s.a. and create 4,000 new american jobs a great investment in american manufacturing. for both of these companies, it probably gets them off the president's radar if he continues to go after manufacturers who are building in mexico and then shipping to the u.s.

by the way, toyota has six manufacturing plants in the u.s., four of those are final assembly plants. they could use some more capacity because they have strong sales relative to the competition. they're down but not down as much as the rest of the auto industry this year so, again, guys, we don't know where this plant will be built, but they expect it to be up and running by 2021. >> the other part of your announcement, phil, this was to develop technologies, e.v. technologies. >> yeah. >> where are they in the e.v. race and could this be a competitor to the model 3? >> they're way behind. they're developing electric vehicles and plug-in hybrid electric vehicles. they don't have anything that's rivaling the model 3 coming out any time soon. they have electric vehicles in the works but not something you would look at and say, boy, this is a direct competitor. >> phil lebeau in chicago. >> you bet all right. on deck, a strong jobs number.

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hello once again, everybody. i'm sue herera here is your cnbc news update for this hour. a nationwide manhunt continues for a northwest university professor and an accomplice suspected in the murder of a chicago man. windham latham and andrew warren stabbed to death trenton cornell lowe inside the professor's tenth floor apartment some nine days ago. an historic boston restaurant is closed after a fire forced diners to evacuate fire broke out at union oyster account. wells fargo says it has settle a 2006 lawsuit related to veterans administration loans. the bank paying $108 million the bank says it denies the allegations in the lawsuit but it paid the settlement to resolve the claims. and today is national

chocolate chip cookie day. back in the 1930s ruth wakefield inbe vented the recipe at the toll house inn in massachusetts. she was baking cookies for her guest when she decided to alter her recipe using a nestle's chocolate bar. the rest is history. delicious history at that. that's the news update at this hour brian, back to you. >> sue, thank you very much. you've got it. investor bill ackman has a new target ackman looking to propose a minority slate of directors, four or fewer, to an adp board adp is based in jersey they're denying his requestto extend an august 10th deadline for nomination of directors so that he can nominate his slate, including himself to the board in a statement adp said, quote, the board has unanimously determined that it is not in the best interests of adp or its other shareholders to accede to

pershing square's last-minute request for an extension he's had some winners but his massive loss in valeant, losing fight with herbal life are empowering them to push back adp did rise on the initial news of his investment. it has doubled well before ackman even got involved in the name >> this has been a slow and steady wins the race company since basically 2010 if you look i don't think they've done anything wrong quite frankly this is not going to be a ridiculous grower. remember, they had to deal with an economy that was on -- in a difficult period of time in '08, '09. >> payroll many of our viewers know this is your paycheck who you get. our viewers probably know that i'm not a big fan of the term activist they're activists for their own investors. >> of course they are. >> they had a name that wasn't so nice. to your point, guy, this is an odd choice of a tart the stock has outperformed all

of its peers. >> this is bill ackman going back to an investment he had he was active in adp and advocated for change in 2009 to 2011 adp fired back the ceo essentially saying while the company's returns have been much better than ackman so go away, ackman. >> perhaps agitator is better than activist as a new phrase. >> maybe >> the agitator. that should be your nickname on "fast money" when you host brian the agitator sullivan. do you like that >> yeah, i do. i'm going to agitate you a jacket. >> i can think of a lot of other things. >> steve liesman said -- >> what? >> i can think of a lot of other names for you. >> some umbrage with that but i let it go. >> respect your elders. >> i can take my jacket off but i don't want to hit you with my pec. >> excuse me while i laugh at that

macy's, target and kohl's feeling the pain walmart is up 16% this year. has walmart found the secret to becoming amazon proof? joining us bill simon, former president and ceo of walmart u.s.a. bill, great to have you with us. you know, in the notes our producers -- >> great to be with you. >> about amazon, you say the biggest mistake retailers can make is replicating amazon in any way. for walmart and amazon, there seems to be a convergence in their business models. amazon has been picking up online properties. walmart has been going in the physical bricks and mortar sort of direction beefing up its network. in the meantime you've got these models sort of coming together is that the secret to success here >> well, you're right. they've been getting closer together i think the whole foods acquisition with amazon was significant but maybe not for the reason a lot of people think. what it really does, i think, is

validate amazon's position in that they've sort of concluded that they can't become what they want to be or get where they'd like to be without physical retail so it validates physical retail in a way. and as amazon moves closer towards walmart and walmart moves closer towards amazon, you are yo' going to see kind of a meshing. the real reason is it doesn't matter to the consumer the consumer wants things and they want them in the most expedient and cost effective way. the people who figure out how to do that are going to be the winners. >> walmart has been investing in groceries. clearly when amazon announced the whole food purchase, a lot of the grocery stocks took it on the chin what do you see in that perspective. do stores and chains go by the way side >> well, the whole segment -- the whole industry is in transition food is in transition as well. amazon selection of whole foods

is going to be a real challenge for them because premium fresh grocery might be the most difficult retail that there is to operate and so amazon's picked up the hardest, not the easiest to start with. by the way, whole foods wasn't in particularly great shape to begin with they've got their challenges ahead of them. walmart, on the other hand, the spine of their business, what holds them together, is not quite a cash cow but it's the basis of their business is food in the u.s. and they've done a really good job building market share. they're now, you know, got the high end threat with amazon and whole foods coming in, but don't for a minute forget or look away from that low end threat that's come from aldi and liedel. they're disrupters and they've disrupted markets in europe and they wi'll be a challenge. >> walmart acquired jet.com. $3 billion did that acquisition set them up

to effectively take on amazon at their own game >> well, i think that remains to be seen. as acquisitions go, i think it was more of an acquisition of talent and intellect than platfo platform they have a nice little algorithm that they're running, kbu i think it signaled to their company and the street and competitors that they were serious about this and i think time will tell how they absorb it and what exactly they do with it >> hey, bill brian sullivan i want to switch gears a little bit because we were talking about bill ackman and so-called activist hedge fund investors. 20, 30 years ago some of them would have been called green mailers. it's not perfectly analogous some of them have a point. the nelson peltz's of the world that are going after companies like p&g, and ge, do you think they're getting too big for their britches

>> i think that's a texas term >> well, it's certainly ambitious to go after those big guys you know, it's -- it's -- it's real interesting having lived through a couple of those experiences on boards that i've been on, as shareholders, activist shareholders, any shareholders are your owners if they have something to say as management and a board, you've got an obligation to listen to them because it might make your company better on the other handsome companies are taking positions and the discussion you were having earlier, that's a fine company they've been performing well so to take a position and try to get something from them feels more like green mail than it does activism. so it's going to be -- it's going to be interesting to see if, you know, success can kin n continue in some of these cases or is it a short term fix to see if i can get in, get a blip and make a sale and get out. >> bill simon. >> by the way, for people who don't know, green mailer was the

term 20, 30 years ago for people who would buy a bunch of stake in a stock, agitate, shake it up and make sure the company buy the stock back famous when michael douglas -- >> you have seen that movie? >> i saw the movie before "wall street 2" came out so i could understand it. and "star wars." >> the jobs report, better than expected showing a gain of 209,000 jobs the unemployment rate fell to a 16-year low of 4.3%. but are all groups seeing job growth at the same rate as the rest of the country? no the short answer let's find out why joining us is mark moreal and joe watkins, former white house aide to president george h.w. busch. george, i'll start with you. what people don't realize about

the president, he said he was going to increase jobs across sort of every gender and race. part of their infrastructure plan is to rebuild parts of the inner city obviously nothing has happened with infrastructure. are you concerned that the president and congress are going to fail their promise to the minority community >> they've got to move on this health care has not been very successful yet we're talking about tax reform, infrastructures on the table those things have to happen in order to really show a marked improvement for all-americans especially americans of color. these jobs numbers are good numbers. the fact that unemployment continues to go down is a good thing. it's good for african-americans. our numbers have not been as robust coming down as the numbers for a majority of americans. we're down 7.4 now which is a continued downward

there are a lot of african-americans that stopped for work basically as long as donald trump remains true to his promises to rebuild these inner cities and using ben carson as secretary to get that done, in order for blacks to see a lower rate of unemployment should be good. >> mr. mayor, do the numbers mean that the trump agenda even though there aren't any sort of big ticket wins yet is actually working? >> this is a continuation of the obama recovery 82 straight months of job growth so to some extent they're all in for that recovery. >> we want to bring the black unemployment rate down if we want to improve conditions for working in middle class americans of all backgrounds, we need investment in work force,

we need increase in a minimum wage, we need a focus on people gaining the skills that they need for the job openings that do remain in this economic climate. >> same question to you, joe >> i think as long as you have an administration and the regulation in lowering taxes, especially corporate taxes, you have a shot to bring people back to work. this is the talk that excites corporate america. small businesses as well as big businesses the regulation and lowering taxes. it means that they have more moneyto spend on hiring people and that will put people back to work. >> joe, i'm going to ask you a difficult question i guess people slammed obama for not growing jobs fast enough now they're going to probably slam trump for bragging he's growing jobs too fast. doesn't matter what party, could be 1950, trueman, do presidents have any power to create jobs in the united states? >> well, that's a great question, brian. that's why they call you brian

the agitator sullivan. that's a great question. >> nice. you're listening >> no, the reality is that presidents by themselves don't create jobs obviously but their talk does. the kind of programs and policies that they champion has a lot to do with whether or not jobs come back president obama did a good job in terms of lowering the rate of unemployment for all-americans i think donald trump's discussion about lowering taxes and lowering regulation is the kind of stuff businesses want to hear they put people back to work, they hire folks. that's what you want to do, hire folks. >> mark, at what point does this economy become president trump's economy in your view >> well, it's his economy now but you can't separate the economy of now from what president trump inherited compared to, for example, what

president obama inherited. so he took a good economy. his challenge is to make it better i would disagree that simply cutting corporate taxes would grow the economy i think putting more money in the hands of consumers, i think middle class tax relief, tax relief that helps consumers spend more money and create the demand for products being made simply not about corporate tax cuts, it means to give more relief and invest more money we have race depression. consumers need more money in their pockets so they can buy all of the great things that we make in america. >> we're going to leave it there, gentlemen have a great weekend >> thank so much. >> thank you. up next, we'll shine a light on a california company that's making its flashlights right here in california but can't label them made in the u.s.a.

first we get to rick santelli on the bonds report a couple of interesting moves. >> yes, and the dollar index is king i've been waiting for all week to say that. look at the chart and pay close attention to the low between 92-60. do you see that big low? guess what that is basically 92.60. and we did hold it does that mean the bottom is in? no it's a big day for the dollar index. to look at rates it certainly pops on better data that actually makes economic sense for a change we're up 4 basis points on the week finally, let's look at a june 31st chart why is this important? we are still basically holding all of the top action for june and july that's a odgo thing

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will answer some of your questions and help you find the aarp medicare supplement plan that's right for you. all right. let's continue our discussion make it in america series. today shine a light on mag lite. the mag lite flashlight, firefighters and first responders, they are made in the u.s.a. outside of los angeles and joining us from l.a. is mag lite founder and president mr. tony maglato thank you very much for being on cnbc. >> thank you for having me. >> of course this is interesting. your flashlights are made in ontario, california, however -- >> you're right, sir. >> -- you are not allowed to say that they're made in the u.s.a

how come >> well, because the law in california, they don't permit that >> why not what's the problem is it one part is it -- >> well, anything -- one part or anythi anything, california so stringent law. the problem is the people don't understand we make everything in this country that we can make the only thing we buy over seas, what we have to do it because otherwise i can't make it. i can't make a flashlight without electronics. i can produce that, but if we want to be competitive and sophisticated as the other people are, i can't compete. you know, i can't make it, the

floo flashlight here at all. >> do you think that hurts you that you can't say made in the u.s.a. even though 99% of the flashlight is made in california, even though last time i checked that's made in the u.s.a. >> yes if you are ever interested in the mail they said, my grandfather not have it. >> sir, in my hand is the flashlight i'm sure you can't see it. it's the one i guess the police forces use all around this country. brian told me this flashlight is about $185 which, congratulations, that's fantastic. i ask the question, who is your major competition in this space? >> china >> chinese >> yes they have cheap labor.

they can bring that thing for virtually nothing. we don't make any money. the store that sells it, they get a better margin. with the chinese than with i dy california so strange. why can't they be just like all the other states in the united states you see, if i made it, even if i go to other state and i made the flashlight and i put the federal law would permit me to put made in usa, i will be sued in california >> unbelievable. and you, tony, what is sad about that, you are the american dream raised on an island off of croatia, built a multi, multibillion dollar business you're the american dream. california needs to wake up. thank you for joining us and have a great weekend tony, thank you.

>> i'm glad you shined a light on that, brian see what i did there no you didn't like that at all. let's get to julia for market flash julia. >> hey, that's right snap share is giving up some gains after some headlines hit the wires about google developing technology for snapchat-like media content. snapchat shares were up 4.5% when the headlines hit now trading up 3%. now, this dow jones report saying that google's developing technology to let publishers create media conten along the lines of snapchat saying they're building the service around the mobile web pages that are designed to load faster and participating publishers would run faster including text, photos and video very similar to snapchat you see snap shares trading up 2.5%, though down from their highs earlier today. of course, we'll hear from snapchat when earnings come out

next thursday. >> julia, thank you. four big wall street calls you need to hear about today a ,

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recommends we need to know about. ryan was criticizing you about -- >> did you get dressed in the dark you needed one of the maglite things because you have a gray suit jacket. >> nice job, brian >> i think it's hot. i wanted to look like a realtor. >> you succeeded >> insulted all the reeztaltorst there. >> they're blue stripe suit pants. >> nobody knows that you're ruining everything. >> first stop icrochip technologies fast money 5:00 p.m. eastern raising price target after a huge quarter for the company this is another triple pay that is a revenue eps and guidance beat, beat and then raised all over expectations. raised their target to 100 to 98 company had its highest operating margin ever.

it it guided to its first billion dollar quarter ever. all of its product lines are doing well lead times are stabilizing due to capacity constraints finally coming off, guys this is the company. it has been operating. >> it has been not a big valuation and trades 15 times forward earnings and everything you just said is spot on what is my question? mel knows me we've been together a long time. why raise the price target if you have that kind of conviction, right? if you're that vosipero$2 raise' seem to be a big deal. >> needham >> we're not talking about needham. >> ford downgrading the automaker. they see uncertainty around earnings growth and profitability remains high and the decision to outsource from china could risk large market share losses >> so, here's my issue, if i

may, with ford motor company >> for specifically or automakers in general. >> or this call. >> okay. how about ford, the call and auto -- >> you have issues with everybody. okay, fine, what >> ford has been, if you look at ford, a $16 stock give or take five years ago in an environment where arguably automakers have never been better served. they're selling cars at record pace in a stock market that has only gone higher and a stock that has gone from 16 to 11 i hear the downgrade now at some point you have to say, it's not working, folks. i agree with it. i think they're late to the dance. >> you agree with him. >> more than once. >> amc mounting a comeback like the italian stallion in rocky three. details of the revival from the brutal knockdown when "power lunch" returns

welcome to the second hour of "power lunch. former fed chairman alan greenspan is worried a bond bubble is about to burst stocks are entering the scariest months of the year should investors be cheering these record highs or running for the exits. taking the rest of the media

stocks along for the ride. will the sector keep sliding when disney, cvs report next week one of the burst and worst jobs for the future. here's one hint, mama don't let your babies grow up to be tv anchors. ouch second hour of "power lunch" starts right now all right. let's check your friday money right now. the dow hitting another record high earlier in the session here are the big movers yelp beating expectations and raised its guidance and selling its eat 24 business to grub hub. more on that coming up go-pro lost less money than analysts thought it might. expect to return to profitability by the end of the year gopro down 75% from where it was three years ago. the big construction company and missed on revenue and shares of fluor are down almost more

than 9%. hitting yet another record high today so far no sign of an august moswoon, but should we b worried about one? hi, bob. >> signs of momentum and weakness lousy for august usually down 2% in the s&p and look what is happening i know the dow is up we have been sideways on the s&p for three weeks now. small caps and trends have really been down and down six out of eight sessions. there you see the russell 2000 what is momentum look at this, i mean, apple is up this week, but everything else is notably to the downside. semi conductors were big market leaders and topped out back in june big names are all down this week, one exception is invidia topped out going back in june. you see what's going on there. downward slope right there

big concern is the energy stocks the guidance and commentary will be better and most of the big names that reported this week were generally disappointing and you see what happened to them overall. okay, does this mean we're in a lot of trouble some sectors that are moving to the four here. we just hit a nine-year high in financials insurance names up morgan stanley is at a new high and ammex is at a new high and some hope among the bulls there is a new leadership group and a number of big industrial names that are 52-week highs, as well. guys, a little bit of a problem here with the big momentum names you have to be careful, a gradual shift in momentum one day we all come in and, boom, everybody decides to sell them that's what happens with these momentum names the momentum is waning in those sectors that wae just talked about. that's what you want to keep an eye on other than that, guys, the big thing is, the rather mediocre response 12% growth in the second quarter and essentially the market has moved sideways the response has been meh on

that i think that needs more discussion guys, back to you. >> technical term there, meh bob, thank you very much >> okay. let's dive deepner to the markets now. and steve. and i imagine your clients who are probably, i hope, up nicely this year don't think the markets have been so meh you know, if you're making money. but are they surprised at the strength, at the strength of stocks >> i'm not surprised at the strength of stocks this is what we were calling for at the end of last year and we saw a lot of good things happening. the global recovery and the economy is doing well around the world and even in the u.s. it is not growing as fast as we would like still continues to improve i'm not surprised. but we have a lot of concerns that we are concerned heading into this year and pleasantly surprised at what the results have been. they are worried continuing to see the new records make new records every day and every week and gets talked about in the media.

how far can this go? we have been trying to reassure them you have been in it for the whole time the reason we're in it for good fundamental reasons and now we have a second quarter of double-digit earnings growth and an economy that is growing not only in the u.s., but also around the world for those reasons we're telling people to stay put and to stay calm >> steve, are we going to look back at this time and, bob had mentioned some of the momentum sectors had been sort of stalling we take a look at technology and health care, real leaders sector wise in the market they seem to be selling for the last week or last couple of weeks. are we going to look back and say this was the time to make a change in your portfolio and make a change here >> four reasons we would see an august swoon those four reasons are earnings season have been weighing and that has been a catalyst or allowed us to be patient we're going to try to pivot to

tax reform but the last few months have told us that the pivot is likely to take longer or be messier yellen will use her speech in order to launch or begin to get the market ready for a september launch a balance sheet reduction and the next job's report, that august report is always kind of funky. what is missed by on average by 40,000 or 50,000 jobs which could spoof folks. we like cyclical value >> no denying, low teens or so, eps growth or so but you don't have the revenue growth to back it up at what point does that matter >> it's different nefinitely, y, worth watching you can grow earnings to a certain point. they do have to drive revenue growth and that's why all these economic numbers are important need to see u.s. gdp increase. it only brings the first half to 1.9, maybe 2%. so you really need to see gdp growth increasing, accelerating and consumer spending to start

to pick up and we need businesses to keep doing what they have been doing the past six months and accelerate spending in a way we haven't seen in the last three years revenue growth is ultimately going to drive the market higher from here. >> all right, steve and chris, our thanks to you. >> thank you shares of viacom are tumbling today the question now is, i don't watch -- >> you said it as if you watch it all the time. don't try to dupe our viewers here >> our producers are very clever and smart and i trust them big media earnings next week julia borsteen joins us with more >> viacom shares are tumbling. you see them down 10% on concern on the company's outlook domestic advertising revenue and affiliate fees from paid tv

providers and streaming companies will decline in the low-single digit percentage range. driving these issues, six of the largest u.s. paid tv providers hosted subscriber last month new skinny bundles don't include any of viacom's networks including mtv and nickelodeon. looking ahead to a slew of media earnings next week, the question is whether viacom will impact cbs, disney and fox. those media giants have an advantage and that their channels are considered core to the smaller bundles. but on the down side, ad revenue is likely to suffer from a 12% overall ratings decline for broadcast tv in the quarter according to media posts now, the other media giant we have heard from this quarter comcast. saw big gains in part driven by distribution >> thank you very much, julia. viacom creatable

>> i think, you know, the problem with viacom. viacom trades half the valuation. other companies twice that but the real issue i had last night is the ceo mentioned the rebirth, you're laughing because it is ridiculous mtv. >> he wants to revive the flagship mtv brand >> it hasn't been relevant long time ago. don't make the face, brian you know what i'm talking about. >> when i was in high school, you were 40? >> ish >> our former producer here, al, is now the newer producer of mtv. >> al. so, al, if you're out there watching, good luck, man >> and viacom, everything hinges upon al. >> this is our -- >> the point being, the point being, if mtv is the hope and salvation of viacom, maybe that

salvation ain't coming >> i think you summarized it pretty well. >> isn't coming. it's albert. >> brian >> all right, still no verdict in the martin shkreli trial. the jury has been deliberating for five days. some weird things have been happening. meg is following it all in brooklyn you have been very patient >> thank you, brian. well, talk about weird talk about a coincidence today, we are on the fifth day of waiting for this jury to perhaps come to a verdict in this trial the judge passing some time by actually arraigning a different set of defendants. one of whom is named martin shkreli. this martin being involved in a case that involves arms trafficking, drug trafficking and even money laundering. so, quite a different case today, guys. in u.s. versus martin skhreli and, of course, this is a

securities fraud trial this jury hasn't made a peep since tuesday when they asked their only set of questions. that was to get a definition of assets under management and frau fraudulent intent. is, hkreli passing the time reading a book about warren buffett and tweeting from inside tweeting, come on, give me that verdict. his defense attorney, of course, closed his closing argument on friday he used a prop, a bag of ruffles and, actually, those defense attorneys on his team yesterday popping open that bag of ruffles and eating those potato chips to say you're eating the evidence everyone is getting a little stir crazy on day five of jury deliberations. we'll let you know if we get any news back to you. >> eagerly awaiting, maybe as eagerly as you. here's what's coming up, talk to the ceo of a cloud company whose stock is up 50%

this year. new white house chief of staff john kelly trying to run a tighter ship thrown anthony scaramucci overboard the best and worst jobs for the future where the jobs are and where they will be all that and much more coming up on "power lunch. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

provider five9 revenue

coming in above estimates. the stock's been on cloud nine over the past few months up more than 50% this year alone. joining us now for a power lunch exclusive is mike burkeline, the president and ceo of five9 mike, thanks for being on the show. >> my pleasure, melissa. >> i'm going to ask you directly about this quote and you said a long-term opportunity for us to get acquired by oracle, microsoft or sap what kind of time frame are you talking about? is that basically you broadcasting to the world that five9 is up for sale >> absolutely not, melissa we're a cloud software company and we partner with companies like sales force and oracle. you know, my comments that i made and the barron's article really about the long, long term opportunity for us to continue to strategically partner with the crm vendors that we do so much joint business with we have a market opportunity that is $24 billion in annual

recurring revenue. it's still very early innings in terms of cloud replacing legacy systems for contact center infrastructure in our business we have a long runway to stay independent. the comment was really around eventually, you know, many years down the road who would be the strategic for this business if there were one >> many analysts excited about the market growth, the market share opportunity for you guys had about 25% of the north american seats here. one analyst said for every 1% share shift to you guys, that could mean 25 million in revenue. how do you look at this bankruptcy opportunity >> yeah. the chapter 11 filing is a huge opportunity for us they are the number one market share legacy solution that we replace every day. they've got the largest share. they're also the company we replace most often and have been

replacing most often as we penetrated this large enterprise market so, you know, not the only chapter 11 filing in this space. we saw another provider file chapter 11 in the last year and a half or so so, a great time to be the cloud disrupter in this market it is, as i said, very, very early days we've got about 10% to 15% contact center agents using cloud technologies today the other 85% to 90% are still running on these legacy, on premise outdated systems that, quite frankly, are delivering a poor customer experience many of us have reached in to contact centers and call centers and had a poor experience. i'm sure you can relate. >> you mentioned in the early stages tremendous runway for you to work upon but the world moves extraordinarily quickly now and how fast is the space, the cloud space that you, that you work in going to be ccoimatized

>> we've been at this for a long time we delivered our first cloud product in 2003. the r and d effort to enter our space and the cloud space is very, very high. we have not seen a lot of new compet itors in our space for years. we had two of our competitors get acquired in the last year and going through the dislocation of being acquired and being merged into their new parent company so, we see just the opposite we see this as a market that's actually coming towards us the legacy providers are struggling some of our cloud competition has been acquired. this market is ours for the taking so to speak a long, long runway ahead of us and significant barriers to enter. >> mike, we'll leave it there. a pleasure to have you with us >> thanks so much. >> mike burkland breaking news on wells fargo. wells fargo stock taking a steep

and sudden drop. not soaring but up slightly and now down 1.3%. some headlines and a big filing that wells fargo put out there and some people have dug in there and there is some concern that the costs of lawsuits or legal issues is going to be greater than wells fargo had thought. again, this is according to some of the headlines that are out there. dow jones example, wells fargo expected to face regulatory sanctions and there is a concern that these legal costs are going to be above the 3 to $3.3 billion that wells fargo guy had set aside. >> you wonder if mr. buffett will make comments about this at all at a certain point a larg in the space for a number of different reasons mostly self-inflicted wounds the real story is do the financials stay in tact despite this yes, stay away from wells fargo and look at banks that seem to have some air in their sales and tail winds and like a citibank

and like a bank of america if you look at it, trading at three or four-year high right now. >> the consumer financial protection bureau exploring the possibility of freezing customer accounts so, we're processing this through this 10q looking through the section of customer remediation the stock certainly moving off of this filing. >> earlier today, the office of the comp troller of the currency government agency occ apparently requested more information about the autoinsurance scandal. if you don't know what that is, remember last year or two years ago wells fargo had opened up all those fake accounts for customers. hundreds of thousands. well, it just came out recently that apparently wells fargo had basically forced customers or inadvertently pushed customers into autoinsurance accounts and policies that they did not need or want. you had a headline out earlier that the occ, office of the comp troller of the currency was

looking at this and also getting word now that there may be another leg to the fake account scandal to come, as well so, all of a sudden, you've got this company that thought it had the fake account scandal behind us now, it has effectively fake autoinsurance policy scandal and, perhaps, much higher legal costs than people had thought. >> so, if you are a shareholder of this, which i am not, by the way. what would your inclination be would you stay with this and say valuation and get through this you say you know what, the headline risk is such that i have to get out and maybe find another bank i would choose the latter rather than the former. >> we had yields of moving higher and we should not, wells fargo is off the worst session right now down by 1% but, still, underperforming the banks overall had been a pretty good day for the banks >> the stock is down 1%. you don't want to make more of it than it is. it was a rapid drop.

there is the enter day on the side of your screen. this is a bank guy, to your point, this is one of the biggest banks in the world one of the biggest holder of mortgages in the united states it was all the fraudulent accounts and now fake or inadvertent or unneeded autoinsurance policies one has to wonder, and i know you don't own it how does this happen because the previous management was ousted >> and -- >> i don't know if this happened under the previous management or when. >> i shouldn't say because i don't know but my instincts would be this happened in the prior management, i would guess. i think that's probably a fair guess. but now you get to start to say are there a new round of senate hearings coming down the pike. what does the future hold in store? i understand you want to hold it on valuation but the headline risk is such that it's going to get worse before it gets better, in my opinion. >> yeah, so, anyway, there's

wells fargo. watch the legal cost, folks. that explains the move coming up, could this company be the next big thing? it lets social media recommend isees wepih nt.ona commissi th wk'por tcisex

hello, everybody i'm sue herrera. emergency crews are treating at least ten people who became ill after coming in contact with a suspicious package that arrived at an irs facility in missouri they have isolated that package, put it away and sealed it off from other workers no other details were provided. thousands of iraqis taking to the streets in baghdad to protest corruption in the government the protesters waved iraqi flags and chanted slogans at the mass rally. venezuelan government officials and supporters gathering outside the national assembly building. they sang the national anthem prior to an swearing ceremony. sweeping powers to upend institutions but most suspect it will initially try to wipe out government brazilian soccer star neymar flying into paris for his

official welcoming at a packed news conference it was sad to be asked whether money was the reason for him leaving barcelona. he has never been motivated by money. that's the news update this hour melissa, back to you >> no comment. >> i'll comment. i mean, are you kidding me >> that's what he says >> he's motivated by happiness >> i'm with you, sue but, i mean, this is full of it, man. >> i know, well, you know, he says he's motivated by happiness. but happiness -- >> that's nice >> that's nice >> i would be happy, too, if my swimming pool was filled with hundreds like scrooge. >> is that scrooge mcduck. c time for today's power pitch where entrepreneurs have 60 seconds to convince a panel of experts that they have what it takes to be the next big thing

>> hello, my name is eso and we're the founders of co-sign. have you seen a product and an image and wondered where to get it from. this happens all the time on social media it allows users to recommend products in their photos before they're shared on social media oso now a friend or follower could shop their posts and once they do, they get a commission >> so, we partnered with networks and teleagencies to creating an exciting marketing campaigns to help unlock the 1.8 billion photos shared to social media daily. the revenue comes from each item sold. >> today we have over 12 million retailers in our data base >> 25 years of retail experience and a great advisory board we raised 950,000 this fall. now we want to partner with you to help lead the charge for the social commerce revolution

>> will you co-sign? >> welcome to today's power pitch. you just saw co-sign's pitch so, let's meet the panel joining us here on set, new york angels alisha and venture capitalist and start-up adviser. >> alisha, first question to you. >> on the outreach front, how are you making brands and consumers aware of your offering >> the way we're currently sharing about co-sign is we're allowing to partner with major talent agencies and inflew wensers because they know how to get the word out the best so far, especially when it comes to social media. >> nir, next question. >> what makes you different? >> our technology. we provide the easiest technology to allow you to easily tag products and share socially and share to all social networks leaving your audience where they're already at. >> my first question to you. who is bringing the brand

relationships? is that co-sign or your users? >> co-sign co-sign is going door-to-door to all our retail relationships we partner with large ad networks to connect us to these brands and retailers around the world. >> i played with your app and i saw products from clothing to basketballs to drones. is there a strategy around product cuorrasion >> right now we're telling it from the fashion aspect. kind of our passion but as we grow, we're seeing different users on that flatform tag kids' toys and electronics >> all right, kelly. >> who's overseeing the distribution of commissioners? >> once a product is sold, the retailers pay us and then we then pay the influencer who helped >> what can you share about the level of revenues you generated to date? >> so far has been really fortunate in partnering with a

retailer that we're doing a paid pilot with over over six figures, as well as see some revenue through our app and now our latest cosign 2.0 in the app store. >> we heard what they had to say and now we want to know if our panel is in or out >> so, i played around with the app myself and i'm not sure if i would personally use it. but i don't have to be a consumer of the product to recognize a business opportunity. i like this team i like the technology, and i think they have a lot of really interesting data points on the traction side. i'm going to go in >> nir. >> social commerce is definitely the feature and will be a billion dollar winner here but the space is crowded and too early to tell who the winner will be. for now i'm out. >> kelly. >> i've seen technology like this on the bigger blog sites and i like they're taking it down to the individual social media user i think it's great that it's visual for those reasons, i'm in.

>> two ins and one out what is your reaction? >> we're excited thank you so much for the feedback and really believing in the social commerce space. >> thanks so much to our panelists and that is today's "power pitch." >> you heard to hear what the panel said and now if you are in or out on cosign for more head over to powerlunch.cnbc.com. secretary of state rex tillerson meeting with north korea's foreign minister this weekend. trying to figure out how to get them to stop firing missiles new chief of staff john kelly bringing military discipline to the white house and really trying. can he really change things? and we are continuing to follow the drop in wells fargo i'll tell you why atth's happening and what may be next, coming up. we created the ripple: the doughnut in a doughnut in a doughnut. right away, it was a success.

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breaking news a jury has reached a verdict in the martin shkreli case let's go straight to meg >> what we know the verdict is

in the jury has not come back into the courtroom to deliver that verdict. we're waiting for their decision on eight separate counts and conspiracy to commit wire fraud in this trial of martin shkreli. it has been almost five full days we'll bring it to you as soon as the jury files back into the room, guys >> thanks, meg. reuters reporting that the united states is aiming for a u.n. security counsel vote on saturday to impose stronger sanctions on north korea this in response to north korea's two intercontinental missile tests last month in july we're joined by adam, former supreme ally commander at nato and also the author of a new book "sea power" history and geo politics thank you for joining us, again, sir, appreciate it >> do you think the u.n. will do

anything and if they do anything, will north korea care? >> i would say no and no would be the answers to those questions. first of all russia will put a spoke in the bicycle wheel and stop the progress. they don't have any interest moving in a positive way secondly, we've seen u.n. sanction after u.n. sanction apply to that effect as everybody points out correctly at the end of the day, all roads to pyongyang lead through beijing. we have to get china to squeeze this economy if the chinese will not doit, it won't work. >> i don't know what your view in the u.n. is, but this sounds like another softball by the u.n. they can do whatthey want. they can do the vote and agree to it and it won't matter. >> that is correct and, again, what will change the situation is either military action, which has a lot of downside or china getting involved and using their

economic levage. they control 92% of the economy. those are the only two game changers out there >> i mean, china has already said effectively that this is a situation, this is a matter for north korea and the united states it's all on their own. >> exactly and the reason for that is china likes the status quo changes that regime in north korea and cracks open the korean peninsula and allows a unification of korea they watched what happened when west germany and east germany were united and created a juggernaut in the heart of europe they don't want to see that happen in asia they're quite content to see this situation muddle along. don't look for big changes any time soon. >> excuse me, admiral, we have the verdict in the martin shkreli case let's go to meg. >> melissa, we just heard about one of the counts of eight in

this case for martin shkreli conspiracy to commit security fraud, he is found not guilty by this jury. count two, not guilty. count two, not guilty. waiting for more counts here count three. guilty for martin shkreli. three of eight so far. still waiting for these to come in from these jury, which has just come back, guys i'm not seeing count four and on yet. two counts not guilty. one count guilty five more to go. we'll bring you more as soon as we get it. >> meg, thank you very much. we appreciate that there are your counts. meg, i'm going to give you a second here. >> not guilty. >> count four not guilty count four not guilty. so, one guilty count of four three not guilties still waiting for more here. >> four outstanding. >> count five, for outstanding count five not guilty one guilty count of five count five was conspiracy to

commit wire fraud, not guilty. still waiting for three more here, guys count six coming in now. guilty that is securities fraud he is found guilty on security fraud as it relates to mnb health care. those have to do with his former biotechnology company. count one not guilty count two, guilty. count three, not guilty. count four, not guilty count five, not guilty count six, guilty. waiting here on count seven conspiracy to commit wirefraud they have found him not guilty on that count, guys. two of seven he's been found guilty of. the other five not guilty. waiting on that final count. found guilty of count eight. that's three guilty counts of eight, guys. we will bring you any more news from what's happening inside that courthouse and, of course, because he has been found guilty on three of the eight charges,

that is a conviction but any sentencing wouldn't happen today we'll have to wait for the judge for that martin shkreli found guilty on three. >> two guilty for security fraud and one guilty for conspiracy to commit security fraud. what can we expect for sentencing >> well, melissa, when he was arrested, they said he could face up to 20 years incf convicted. predicted this outcome that he might not be found guilty on a few of them, not all of them since this is his first conviction, he would not get 0 years. maybe two to three to seven to eight years. of course, we have to wait for the judge to hear on that. >> it could be a fine. conspiracy to commit security fraud, a felony. but especially a first offense, could be a large fine to either any profts and then levee a fine

on top of that, but, meg, is right, also the option of 25 years. but under each act so, there could be more. but given that he is a first-time offender and found not guilty in five of the eight. again, it's -- >> you know, meg, obviously, martin shkreli has been a lightning rod kind of figure is there any sense that the judge could sentence with an eye of setting an example for the world and making an example of martin shkreli >> it's interesting you say that you know what he is famous for which is raising the price of the old drug isn't what he was on trial here for. this judge has bipartisan very fair this whole time as far as i can judge. i don't know how she will rule in this case >> okay. so, again, three counts of eight martin shkreli has been found guilty one count conspiracy to commit

securities fraud. >> i don't know if the team would consider sthis a success o not. convicted of three different crimes not guilty on five of the eight crimes certain types of conspiracies you could see commit securities fraud and then you have some others and remove the guilty and not guilties as we read what those counts are, that would be great. again, of the eight, five were not guilty but of the three, they are serious. and they come with serious possible penalties here, however, i would imagine, again, i'm not an attorney i do have a law degree i don't practice but i'm trying to go back i would bet that his attorney is going to come out and either declare this a victory or demand some kind of immediate appeal. i wouldn't be surprised to see them claim some win here >> all eight is a loss, right? three out of eight and they seem to be and i'm trying to go through it, the lesser of the eight charges. so, to your point, does he spend time in jail if smugness was a crime, he

would spend the rest of his life in jail. that is not a crime yet. >> we had noted, melissa, we await the shkreli team to come out or the prosecutors as the days went on when meg said we have a verdict, i bet it's not guilty on all or a lot of them because if a jury generally takes five days to decide something and they did not have a lot of questions if they have a lot of specific questions for a judge or a jury, what does this mean? what does this mean? they had a couple but not a lot in a case like this. indicates they have a feeling about it here you could tell five days, not a lot of noise they must have fundamentally disagreed about certain tenants of the case. and they obviously did >> should be fascinating tosy. this is clearly some sort of press conference coming up and that, as much as you two were a must watch, this will be must-watch tv. >> sort of a gag order on martin

shkreli and he found another twitter handle and managed to tweet even during the court session yesterday or the day before any anticipation to whether or not he might make a statement himself or if he has been active on twitter or any other social media outlets. >> well, it has been reported that shkreli has been back on twitter under yet a new handle and not his name he was, of course, officially banned from twitter earlier this year after harassing a female journalist so, we think he's been tweeting from inside the courthouse as he's been waiting for the jury to come back saying he was inpatient to come back he also was, of course, barred from the judge from discussing the case actually physically discussing it in and around the courthouse for fear the jury could potentially overhear him we will wait for him and his attorney to come outside and we hope we will get a comment from his attorney, if not from mr. shkreli. we don't know about that

but we'll bring it to you when it . >> your coverage has been incredible from the beginning. a charge lobbed on to this about his beneficial ownership of retrofin shares. the biotech he used to run is that count eight? i would assume that is count eight, which is this charge they, they had sooev againeven m and they added an eighth i would assume that is eight on this list? >> that's a really good question, brian. i don't know the answer to that now and i want to be sure before i gave it to you >> the reason i bring this up is there are two counts, guys he is conspiracy to commit securities fraud two charges against him. one he was found guilty on and one he was found not guilty on one to commit securities fraud had to do with this concealing the beneficial ownership of retrofin shares. not saying it is a crime, it is. however, of the other charges,

trying to defraud investors, i would say that would be the least of the charges so, my point in bringing this up is if, indeed, that is count eight and that's what he was convicted, that's one of the three he is found guilty on. that means he was found guilty -- meg, yes, please >> i found the answer to your question, brian. i'm fairly certain when he was indicted certain there were seven counts as you say. i believe the seventh one did end at the seventh count here which was conspiracy to commit wire fraud as they applied to the retrofin scheme, which was still count seven where he was found naelt not guilty here. where he was found guilty was on that eighth count conspiracy to commit securities fraud. i believe you are correct, brian. >> thank you, meg. again, not insignificant but what i'm saying, the concealment of a beneficial ownership of a stock is more of a technicality -- viewed less harshly in a penalty phase than

actively trying to defraud an investor >> right >> all good points meg, we'll check in with you a little later on. you see the left side of your screen the live shot in front of the brooklyn courthouse where we are anticipating the lawyers, the team for martin shkreli to come out and make a statement as soon as they come out meantime, get to the other breaking news story that we've been dealing with. wells fargo, the stock down by 1% leslie joins us with more. more details from that filing. leslie >> just when you think you've seen the end of the sales practice scandal at wells fargo. we're learning from 10q today that a wider exam may find "significantly more fake accounts at wells fargo. they also, this is important from an accounting standpoint. they see possible legal costs beyond their reserves of $3.3 billion. those reserves that they currently set aside for legal costs may not be enough. and that includes losses due to

litigation and legal costs related to those autoinsurance sales to customers that did not need the insurance now, i want to read you a quote from the company they say it is also inherently difficult to estimate the amount of any loss and there may be matters for which a loss is probable or reasonably possible but not currently estimatable. accordingly, the actual losses may be in excess of the established accrual or the range of reasonable possible loss. we're looking at a lot of uncertainty here the board is engaging in a comprehensive review of its structure, and we expect the results to be announced in the third quarter, guys. >> leslie, in terms of the losses be possibly much bigger for wells fargo and not be estimatable at this point, i mean, one source of that according to the filing is that they're expanding the window in which they're investigating, right, the possible wrongdoing they're going farther back in time and bringing up the other

end of the range to a day closer in time, september 2016. >> exactly what the ceo wrote, he accompanied this 10q in a letter where he talked about how this is just their efforts to be a more transparent company, to be able to rectify and earn back the trust of the customers who have been completely turned off by all of the headlines, all of the ongoing litigation and issues related to their sales practices scandal. this is the company trying to get out in front of that, but we'll see if it actually works melissa? >> leslie, thank you leslie picker. >> all right well, just a reminder. we're watching a breaking news story. martin shkreli guilty on three of eight counts against him. we also had that wells fargo stock drop a lot happening here with just over an hour to go for trading for the entire wk.ee don't go away. a lot of things fluid. we'll be right back right after this

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experience amazing at your lexus dealer. martin shkreli is loafing the brooklyn courthouse. you can see him there approaching the podium with his lawyer let's listen after he's been found guilty of throw of eight counts. >> i'm going to make a short statement. mr. shkreli is going to make a short statement and then i will take some questions, but i would appreciate it if you direct those questions to me and not to mr. shkreli. i think we would love to have a complete sweep, but five out of

eight counts not guilty is in our view a very good verdict, especially since count seven, the main count that impacts on the loss in this case, the retro fin lawsuit. that was the most important count in the case from our perspective and for martin not to be found guilty on that count is a good result as far as we're concerned. this was a difficult case because of the anti-shkreli sentiment, and to the extent that this jury acquitted martin of five out of the eight counts is a real testament to trial by jury and also to be honest with you testament to the importance of advocacy. we think that the verdict as it now stands, even if all of the counts survive post-trial

motions, will permit this court to impose a very lenient sentence in her discretion as the retro fin count was rejected by the jury, and that was the key count in terms of potentially advisory sentencing guidelines because of the amount of money that was alleged in that account, so martin would like to make a short statement, but if you have questions, please, direct them to me. also, i would like to thank our team this was indeed a team effort, and i think we had an interesting trial. thank you very much. >> thanks very much. i think ben said it all. you know, we're i think delighted in many ways with this verdict. count seven was the government's attempt to theorize that i robbed peter to pay paul, and the jury has spoken conclusively

that retro fin was not defrauded. they made ten times or more of their original investment after they did receive settlements i'm delighted the jury did their job and saw the facts as they were and most importantly i would like to thank ben, greatest lawyer on the planet, who took a risk on me and paid off. thank you very much, ben, and mark, who is a great success as a lawyer rcmp and is extremely noteworthy and continued with this case and, of course, tenney, jacob and andrea who worked around the clock to get these five not guilty verdicts as to the three, as mark said, we have some work to do. i think that the jury's found, and it's in the record clearly that there were no losses at all with respect to counts three and six, which gratfies me personally this was a witch-hunt of epic proportions, and maybe they

found one or two broomsticks, but at the end of the day we've been acquitted of the most important charges in this case and i'm delighted to report that. >> okay. if you have any quick questions, we'll take them. if not, it's a nice day and everyone should try and enjoy what's left of it. >> the post trial motion, are you going to appeal? >> well, first of all, there's nothing to appeal from the acquitted verdicts, and with respect to the verdicts that he was convicted of, we think there are serious legal motions, certainly with respect to count eight i think is hanging by a thread legally, and with respect to counts three and six we need to review the record, but the important part is that this verdict gives the court enormous discretion in the kind of sentence that she could fashion, and it allows for a sentence that doesn't even have to include a period of incarceration, and if it does, to be honest with you, a much,

much lower period of incarceration than the government ever contemplated because retro fin was the money count and that factors into the advisory >> do you have a number in mind? >> we believe that there is no loss and if there is no loss the advisory guidelines could be extremely low and the judge has the discretion to impose any suit she feels appropriate >> how does that affect? >> the lawsuit continues. >> it's your lawsuit. >> that's correct. >> this has nothing to do with this current case. we initiated litigation and anyone who looked at that employment agreement understands my employment was done prematurely without any cause. i was terminated by i think some very bad actors, some of that came out in this trial thanks to

my hero, ben braffman, and the litigation is for many of tens of millions of dollars and based on both the arbitration which was won by us and regarding one of the consultants, based on the outcome of this case which was by us, we'll win that and they will be writing a very large check in the near future. >> i think the verdict helps the lawsuit because he was found not to have looted retrofin as well. >> i'm sorry >> what would be your first choice >> i think -- >> your first choice of prison >> you talking about you or for martin >> please, next question. >> that's ridiculous >> i think this verdict is a

reasonably good verdict under the circumstances and i think we need to regroup to see which legal motions remain but if you're asking me are we pleased, we're not 100 pleased but we're 90% pleased. >> what does the split verdict say to you >> would this case have even been brought if it weren't for described as what you described? >> this case had a flawed theory, the controversy surrounding martin, god bless him, is sometimes not helpful, and if you're asking me did that factor into the decision whether or not to bring in lawsuit i think it did, but i really don't think that's where i want to spend my time now. >> what does the split verdict tell you about the way the jurors looked at this? >> i think i'm impressed with the amount of effort put into the jury's work and i think they listened to many of our core arguments, and they obviously

did not go in there intent on convicting martin shkreli just because he's martin shkreli, so that was our greatest fear when we were picking a jury, so we got reasonably fair people whether their verdict is 100% accurate or not, i think we need to review the transcript, review the verdict and on balance i say, again, you know, count seven was the heart of this case from the beginning it was a claim that martin robbed money from his own company to pay back people, and that theory was soundly rejected >> >> inaudible question ] >> we're not going to discuss that. >> there were never any substantive negotiations >> martin, do you think your reputation -- >> let me answer that, okay. martin has some work cut out for him in terms of trying to undo the damage which ihi